A.M. Best Places Credit Ratings of The Warranty Group, Inc.’s
Insurance Subsidiaries Under Review with Various Implications

October 18, 2017 11:18 AM Eastern Daylight Time

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with positive implications the
Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term
Issuer Credit Rating (Long-Term ICR) of “a-” of Virginia Surety
Company, Inc. (Chicago, IL) (VSCI). At the same time, A.M. Best has
placed under review with developing implications the FSR of A-
(Excellent) and the Long-Term ICR of “a-” of London General Insurance
Company Limited (LGI) and London General Life Company Limited
(LGL) (both domiciled in Surrey, United Kingdom). These companies are
insurance subsidiaries of The Warranty Group, Inc. (TWG).

These rating actions follow Assurant, Inc.’s (Assurant)
[NYSE:AIZ] (headquartered in New York, NY) announcement on Oct. 18, 2017
that it has reached a definitive agreement to combine operations with
TWG, which includes VSCI and its Canadian and New Zealand branches, as
well as LGI and LGL.

Assurant and TWG have decided to enter into the definitive agreement
with TPG (formerly Texas Pacific Group) under which Assurant and TWG
will combine operations, with Assurant shareholders retaining majority
ownership of the combined company. The transaction is valued at
approximately $2.5 billion and is expected to close in the first half of
2018, subject to shareholder and regulatory approvals, and other
customary closing conditions.

VSCI offers a broad suite of products and services sold through
complementary distribution channels including vehicle service contracts,
extended service contracts on appliances and electronics. From a
strategic standpoint, TWG will enable Assurant to strengthen its
position in the vehicle protection business in addition to enhancing its
distribution platform. The merger provides VSCI with strategic synergies
as well as the backing of an owner with a history of commitment to
providing similar products and services.

The developing Credit Rating (rating) implications for LGI and LGL
reflect the fact that the impact of the transaction on the two entities
is at present unknown.

These ratings will remain under review pending closing of the
transaction and A.M. Best completing its post-closing analysis of VSCI,
LGI and LGL.